A Guide to Buying a Property in Cyprus

Compared to many other countries the process of buying property in Cyprus by foreigners is very simple. Non-Cypriot buyers are entitled to FREEHOLD ownership of:

• -a villa -an apartment or
• -a piece of land, with a maximum allowed extent of 4014 m2

Offshore entities may also acquire premises for their business or for residence of their foreign employees

Once you have choosen your property in Cyprus a reservation fee is paid to hold the property while your solicitor draws up the relevant paperwork and applies for your residency permit if you intend to live on the island. During this time the contract will be drawn up which will be agreed between the buyer and the vendor - outlining any specific details like furtniture etc. The contract will need to be signed as soon as possible and either a further deposit or full amount will be paid depending upon the agreement between buyer and seller. Once the final payment has been made to the seller, the property then becomes yours.

Non-Cypriots on having signed a purchase agreement for a property, as a formality and routine procedure, are obliged to make an application to the Council of Ministers (COM). The Council of Ministers is the body that grants its approval for a non-Cypriot to transfer a property (title deeds) to his or her name. The entire process may take 5-10 months, however in the meantime there are no restrictions in signing a contract, taking possession of your purchased property, and living in it, as you are the legal owner of the property according to contract law.

(a) Application to the Council of Ministers

To be submitted through the relevant District Officer and the Minister of the Interior with details of:

• The applicant and his financial standing
• The property
• The Owner, the sales contract and the terms of payment
• The type of purchase

(b) Application to the Central Bank for confirmation of importation of foreign exchange for the purchase. To be submitted together with:

• Confirmation from the Commercial Bank that the foreign exchange for the purchase was imported.
• Contract of sale.
• Copy of the Council of Ministers' approval.
• Title Deed of the Property.

(c) Application to transfer registration of ownership. To be personally submitted to the District Lands Office together with:

• The Purchaser's identity card or passport number.
• The Title Deed.
• Copy of the Council of Ministers' approval.
• Confirmation from the Central Bank re importation of foreign exchange.
• Proof of payment of all property and other sundry town taxes to date.

The Purchaser and Seller may give specific Powers of Attorney to a third party to attend and effect transfer on their behalf.

Permits

Immigrants The Minister of the Interior may grant a permit only if the Immigration Control Board confirms that the applicant falls under one of the following categories and meets the necessary criteria.

• (a) Farming. He possesses adequate land or a permit to acquire it and at least CYP250.000.
• (b) Mining. He possesses a mining permit and at least CYP200.000.
• (c) Trade. He has capital of at least CYP150.000,
• (d) Retirement. He has a secure income of about CYP5.000 per person and he and hid dependants will not work.

Self-employed persons must possess academic or professional qualifications, which are in demand in Cyprus and do not crate competition to the local population.

Cypriot Citizenship
Such applications are not easily approved. However the following may submit a written application to the Migration Department.

• (a) Foreigners married to persons of Cypriot origin for over five years.
• (b) A foreigner who has lived in Cyprus for a concentrated ten years within a thirteen year period. However this may not be granted to IBC employees, athletes, football trainers etc if Cypriots' interests are threatened.

Permits & Citizenship
People of Cypriot origin or the foreign wives of Cypriot citizens are not regarded as foreigners.

Residence Permits
Residence permits are issued to the following providing that certain criteria are met.

Property Purchasers
Proof of foreign income to support oneself must be submitted. An annual income of CYP5.000 per person is usually considered satisfactory. Buying a property in Cyprus does not imply that a residence permit will be issued but if the Council of Ministers has given permission for the acquisition of a property an application for a residence permit may be looked upon more favourably.

Temporary Work and Residence Permits
The prospective local employer of a foreigner must submit an application for these permits, on the foreigner's behalf, to the Migration Officer together with a curriculum vita, contract of employment, copies of qualification certificates and details of work experience in the relative field. Once the permits have been issued the foreigner may enter Cyprus to take up his employment.

For more details on a Guide to buying a Property in Cyprus visit Property Abroad Guide to Buying Property in Cyprus